ABC Company sells clothes. They sold a coat for $100. It cost them $60 to get the coat from the manufacturer. Cost of Goods Sold would be: Group of answer choices $100 cannot be determined $40 $60
ABC Company sells clothes. They sold a coat for $100. It cost them $60 to get the coat from the manufacturer. Cost of Goods Sold would be: Group of answer choices $100 cannot be determined $40 $60
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
ABC Company sells clothes. They sold a coat for $100. It cost them $60 to get the coat from the manufacturer. Cost of Goods Sold would be:
Group of answer choices
$100
cannot be determined
$40
$60
Expert Solution
Step 1
COST OF GOODS SOLD
Cost of Goods Sold is Computed :—
Cost of Goods sold = Cost of Goods Manufactured + Beggining Finished Goods - Ending Finished Goods
Cost of goods sold (COGS) is the cost of acquiring or manufacturing the products that a company sells during a period.
Cost of Goods sold in Case of Manufacturer is (Direct Material + Direct Labour + Factory OH)
Cost of Goods sold in Case of Retailers & Whole sellers is the Cost of acquiring.
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